On March 1, Assembly 88 Bill was gutted and amended as one of COVID-19’s relief efforts. As a budget trailer invoice, it takes effect immediately after the chapter. The bill was drawn up by the Assembly’s Budgets Committee and will amend Section 17131.11 of the Tax and Tax Code, Section 8151 of amend, and add Chapter 4.6 (beginning with Section 8152) to Section 8 of the Welfare and Institutions Code.
Section 1 of the bill would include a cross-reference in the Revenue and Taxation Code. Section 2 of the bill would amend Section 8151 of the Welfare and Institutional Code to require the one-time grant payments of US $ 60 to be made to recipients from their eligibility date. The Department of Social Services would be empowered to set the date of approval.
In Section 3 of the bill, Chapter 4.6 would be added to the Welfare and Institutional Code, entitled “Exemption from Golden State stimulus payments and Golden State grant payments from garnishment orders. It would stipulate that a payment of the Golden State Stimulus by the State Controller or the Department of Social Services would be automatically exempt from an attachment order. However, the exemption would not apply to an attachment order for child benefit, spouse benefit, family benefit or criminal refund.
In addition, a financial institution that receives a Golden State Stimulus payment directly from the State of California must release those payments from any attachment order if the payment is labeled accordingly. The financial institution must identify an exempted deposit based on a lookback period during an account verification, which the financial institution must perform at least once. The terms “account verification”, “garnishment order” and “lookback period” are defined in the invoice.
Section 4 of the Bill sets out legislative findings and statements demonstrating compliance with the Revenue and Taxation Code in Section 41. The purpose of this change in law is to provide financial relief to low-income Californians who may be affected by COVID-19.
Section 5 of the bill would give $ 100,000 from the General Fund to the Franchise Tax Board to match existing California Earned Income Tax Credit Contracts to help raise awareness of the Golden State stimulus. The bill would also exempt a contract under this section from applicable state contract laws.
Section 6 of the invoice specifies that the invoice is a budget trailer invoice. It therefore takes effect immediately after the chapter.